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Global Stock Markets and George Soros
It appears than an element of calm has returned to the Global Stock Markets after the absolute pummeling they received last week. Most of the major indexes closed mixed after spending the majority of the day in minus territory.
Within the S&P 500 for example only three industry groups suffered, those being energy, industrials and financial. The reasons for this are relatively clear. Energy stock are being hit due to the lower price of Oil, Industrial companies are being hit due to fears of a continued economic slowdown, particularly China. Financial stocks are being hammered over the fear of a Euro Collapse.
Regardless, investors seem to be shaking off fears that certain heavily indebted countries in Europe are on the brink of collapse. This has been evident in lower bond prices for Spain and Italy. News from China that they are offering subsidies for energy efficient appliances is also illustrating to some that the country is targeting more measures to stimulate its flagging economy.
The impressions of George Soros
There is one well known investor however, who has a less optimistic view on where things are potentially heading, particularly in regards to Europe. Billionaire investor, George Soros, has claimed that the European Union basically has three months left to save the Euro. He is concerned that energy is being wasted in the wrong area to get the beleaguered continent back on track. The focus should be on banks and their competitiveness he argues rather than on debt reduction. "You cannot reduce the debt burden by shrinking the economy, only by growing your way out of it." The three month window ends in autumn. By that time he expects the German economy to also be shrinking and therefore it will be increasingly difficult, if not impossible for the German Chancellor to persuade the public to offer funds for further bailouts.
Big Picture
So, it seems that unless there are policies in place to actually stimulate growth within the Euro we cannot necessarily expect a rosy near term future for the EU, according to George Soros anyway. This will likely carry over to the markets where we will no doubt witness more volatility or potentially, further movement to the downside. (Less)
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George Soros Interviews scribd.com ext: .pdf 1 KB date: 2012-01-24
Source title: george soros on the coming u.s. class war jan 23
www.scribd.com
George Soros scribd.com ext: .pdf 1 KB date: 2012-01-24
Source title: george soros on the coming u.s. class war jan 23
www.scribd.com
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